Small developers are earning more through the App Store

Small developers are earning more through the App Store

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Revenue growth for small App Store developers outpaces growth for large developers.
Photo: Apple

App Store revenue for smaller developers increased by 113% over the past two years – more than double the growth of large developers, according to a study financed by Apple.

And the iPhone app economy supported more than 2.2 million jobs in the U.S. in 2021.

Report puts spotlight on small App Store developers

Economists from Analysis Group prepared for Apple a report entitled Spotlight on Small Business & App Creators on the App Store. “The research paints a picture of a thriving and dynamic app ecosystem where opportunities and innovations have flourished,” says Apple.

Growing revenue allows small developers to become large ones. The research indicates that 45% of today’s large developers were either not on the App Store, or had less than $10,000 in earnings, five years ago.

And the benefits are spread around the globe. The researchers found that about 24% of the developers joining the App Store in 2021 came from Europe, 23% from China, 14% from the US, 4.3% from Japan, and 34% from other regions including Korea, India, and Brazil.

Small developers in all major regions have seen their earnings increase over the past two years.
Chart: Analysis Group

Apple needs positive news

Upbeat news about about App Store earnings for small developers helps Apple in multiple ways. For one thing, it’ll bring in new developers, and the iPhone-maker gets a cut of all the software they sell.

But Apple is also facing the threat of regulation from governments around the world. The company can point to a report that highlights the ways the App Store benefits small business as evidence of why additional regulation isn’t needed. Even if Apple commissioned the report itself.

Source: Apple